ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Employment Programmes- Large Leakages

September 9, 1972 market zoomed from Rs 1.80 per kg last November to Rs 4 per kg about two months ago. Currently, the price is still well over Rs 3 per kg. Why did the price shoot up so sharply? The price rise was supposed to have been triggered by a sharp decline in sugar production. Sugar production declined from about 43 lakh tonnes in 1969-70 to 37 lakh tonnes in 1970-71. It is believed to have declined further this season, though precisely by how much no one knows for sure. The government's estimate is a sugar output of 31 lakh tonnes in 1971-72. What made the government come out with such a low estimate is not clear, but the industry was quick to revise its own estimates in tune with the official figure. Thus, estimates sourced to ISMA, after fluctuating between 32 and 33 lakh tonnes between October and March, were scaled down to 31 lakh tonnes in April. Maharashtra sugar co-operative interests similarly plumped for a figure of 30 to 31 lakh tonnes to start with and revised their astimate to 27 lakh tonnes by the end of April.

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